Steal the Hong Kong Monetary Authority’s Best Plays!

In the world of exotic currencies, each one has its own unique facets and personalities. However, one currency that has a particularly unique situation is the Hong Kong dollar.

Let me explain. Hong Kong’s Monetary Authority (HKMA) pegs their interest rates to the rates in the United States. They also somewhat “control” the Hong Kong dollar. In other words, they let their currency move up and down in value (“float”) based on supply and demand fundamentals similar to how the Fed or European Central Bank allows their currencies to float.

But there’s one serious difference. The HKMA only allows the Hong Kong dollar to float within a controlled “band” (i.e. within certain levels). This means that if the Hong Kong dollar gets too low or high the Monetary Authority will intervene and artificially manipulate their currency’s value.

So what if you knew exactly when the Monetary Authority would intervene? In other words, what if you knew the preset buying and selling levels (trading band) for the Hong Kong dollar?

If you did, you could steal the HKMA’s best moves, before they acted. You could buy or sell the USD/HKD pair just ahead of the next wave of profits, courtesy of the HKMA.

The good news: It’s not difficult to figure out when the HKMA will act next. Take a look at the chart below. I’ve outlined some “buy and sell zones” based on where the HKMA places their trades. I make it a “zone” because the pair doesn’t always make it all the way to its band each time.

The Profit Zone for the Hong Kong Dollar


The even better news: We’re about to hit another profit zone for the Hong Kong dollar.

If you look at the chart above, you’ll see the USD/HKD is about to fall below the Hong Kong dollar’s established trading band. In other words, the HKMA will soon jump into the market and buy up Hong Kong dollars to force their currency’s value higher (provided of course, that traders don’t beat them to the punch).

In other words, we’re hitting another “buy zone” for the USD/HKD.

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